The Luzon is Falling Down.
We heard in today’s Tacoma City Council Study Session some rather depressing news. The continued deterioration of the historic Burnham & Root designed Luzon Building at South 13th and Pacific Avenue prompted the City to hire a consultant to take a look at the building.
The consultant’s report has resulted in a “dangerous building designation” with notice going to the Gintz Group, the building’s owner, today. The report found that the walls are not strong and the building is an imminent danger to the public. The City is considering closing roads and lanes near the building, including all of South 13th, for public safety reasons.
City Manager Eric Anderson stated that, “we’re about to lose the building” and gives it less than six months. And, according to Ron Gintz, the report is completely accurate and reflects the reality of the situation.
That said, buttressing of the walls could be done in the interim.
If you recall, the redevelopment of the building was being financed by a complex set of public and private funding sources. The city had originally set aside $1.6 million in UDAG loans for the Gintz Group. Those funds are immediately available to buttress the walls should there be an action plan in place to that development.
But according to Gintz, shoring up the walls would cost $500k to $700k and it’s not the solution anybody wants. “It’d still be an eyesore. We want to fix the whole building.”
The total budget to renovate the building is $8 million, but financing continues to be unavailable. All they need is for 3 floors to be pre-leased. Then it’s all a go. Seriously … do you need an office? They could begin work in two weeks with a few signed leases.
READ THE FULL REPORT
The Luzon Building Evaluation (pdf)
Previously on Exit133 w/ PHOTOS: Luzon Unlocked
Filed under: General
33 comments
N Nick July 7, 2009
Sheesh, there really is no reason this building can’t be saved. Any stimulus love out there maybe?
I ixora July 7, 2009
Geez, and the city just spent millions on rehab of a parking garage across the street (Park Plaza South). And it wasn’t even falling down. Come on city government. This building is a National Monument, for crying out loud.
C crenshaw sepulveda July 7, 2009
Surely the city of Tacoma needs more office space. How about it, lease enough floors so Gintz can finish the job. And what about the UWT, I bet they could use some more office space as well. I’d mention the Russell company but we know how they feel about Tacoma. How hard can it be to lease out a couple measly floors in this splendid building?
E Erik B. July 7, 2009
Not good. Looks like the building could soon be yet another surface level parking lot in a sea of blightful surface level parking lots downtown.
The Luzon is on the left:
D Davest July 7, 2009
The penthouse office space lists at $55,000 for a year. 2400 Sq Ft.
It’s going to take a year to get it renovated. You can still lay low for 2009 and move in as the economy comes back to life and have the added good karma of saving a very historic building.
I understand sub-leasing is also acceptable so you could even grab a couple floors and make some money back.
J Jesse July 7, 2009
Can Gintz make a “Dummy LLC” company and rent the floors to themselves? That way they could also have a company that loses money and gets tax breaks to boot. I’m no accountant, but I have heard of this before…
J Jesse July 8, 2009
I just looked at the report. Whoa. Goodbye Luzon.
C crenshaw sepulveda July 8, 2009
The last time the Gintz group spoke about the building in print they said it was in remarkably good shape and there was no chance that it would be falling down any time soon. Doesn’t seem like it was all that long ago. I hope this building stay up and stays safe. A lot of traffic, particularly buses go by the Luzon. Perhaps the Gintz Group can move into a trailer in the adjacent parking lot to prove to us how safe the building is or at least be first responders should disaster strike.
M Mofo from the Hood July 8, 2009
The Fun Circus Building is falling down?
M Morgan July 8, 2009
C’mon City of Tacoma leaders!
Just create the damned Public Development Authority!
So we can see action taken on buildings like: The Luzon, the Elks building, Old City Hall, etc.
The City of Seattle has had a PDA saving their buildings for over 30 years now! How many buildings need to collapse before Tacoma City leaders take ACTION?!
- nice photo, btw ;)
T tressie July 8, 2009
oh brother. The Luzon should have been worked on instead of the building of the new monstrosities in town….I can’t believe what people with college degrees and money will do…or rather won’t do. Incredible and continuing rotten stinky real estate decisions made by folks who did/should have known better. Seattle and Portland don’t need to kick Tacoma, the city “leadership” is plenty good at destroying a darling little beach community.
S Susanne July 8, 2009
There is a lot of Asbestos present in that building in different forms. How can it be demolished without exposing the public to the fibers?
C crenshaw sepulveda July 8, 2009
I have a feeling that if the building falls down on its own we’ll be exposed to lots of fibers.
J jamie from thriceallamerican July 8, 2009
I think DaVita would be a good candidate for leasing space, and the city should be playing matchmaker on this. If I’m not mistaken, they’re currently using the surface lot immediately next to the building, and if they want more space close to their current building, this is perfect in the short term. In the immortal words of one Timothy Gunn, make it work!
Y You're Welcome July 8, 2009
Something seems fishy! @8 is right, it wasn’t that long ago that GG said the building was in good shape. Hmmmm.
A altered Chords July 8, 2009
Attention exit 133 readers. Call your friends and relatives and rent tell them to rent office space in the luzon building.
Rennovating the building costs money.
Lenders won’t lend money unless they have a reasonable expectation of getting it back.
They would expect repayment of loan if space was pre-leased.
No lease = no financing = no rennovation.
Just make some phone calls readers…get space leased in that building.
Do I have to do everything around here?
M Morty July 8, 2009
You’re Welcome @15 is right…something seems fishy. The building is a 6 story structure with 2400 sq ft floor plates, =/- 14,400 sq ft. the article states that rehab cost would run $ 8,000,000 that’s $555 a square foot.
Seismic retrofitting, roof and windows, systems and facility upgrades to make rent ready would cost a fraction of that. I have been involved with several antique brick structure rehabs & never spent anywhere near this. …consider 505 Broadway a brand new concrete and steel multilevel structure built with excavated parking and luxury finish came in at about $350 dollars a sq ft.
Sounds like the owners are screaming the sky is falling to squeeze the city and create a buzz. The city should order owner to get a second analysis and report.
J jamie from thriceallamerican July 8, 2009
Does the $8 million include the planned new construction on the adjacent lot? That would bring down the per-sqft cost significantly.
I ixora July 8, 2009
Fishy? Look at the photos. Read the report. I mean, there has been a tree growing out the side of this building for about 10 years! I don’t know anything about the cost of rehab per square foot, but I do know they don’t need another analysis to document the obvious… this building is about to fall.
D David Boe July 8, 2009
Having been inside the building within the last year – I would not doubt that the building is in as bad a shape as reported to be. Demolition through neglect. The block between S. 13th and S. 15th was a collection of great two and three story builidings (14 in all I believe) that were torn down c. 1984 (you can thank Paul Schell for that – yes that Paul Schell) and sat on by Pierce County for years until sold to private developers c. 2002. The Gintz Group may be holding the bag – but they really didn’t create the situation.
B Brent Tayet July 9, 2009
The trouble is that in today’s capital markets environment you need to pre-lease at least 75-85% of the building prior to construction to get financing. That would be close to 24,000 SF of office space or approximately 4.5+ floors.
Even if you can do that, at market rates, the project still produces negative cash flow and is “upside down in value”.
Tacoma’s low office market rental rents and lack of relocating Tenants just don’t warrant a costly renovation…
Unless something changes in the near term, the seemingly only solution to the dangerous blight at the corner and entrance to the heart of downtown is to raze the building.
I ixora July 9, 2009
“The seemingly only solution… is to raze the building”…? Are we but shackled as a society to the market? I think not. This building could be rescued. It is a cultural/historical gem that defies the simplistic market value… if we as a people believe it to be so. Contact your city representatives and tell them to take action to save this building. It cannot be replaced.
R RR Anderson July 9, 2009
Eagles Lodge Part II !
I’m tired of reruns!!
O offbroadway July 9, 2009
@ #17 Moty says “I have been involved with several antique brick structure rehabs…..”
I happen to be involved with a similar historic project right now in a nearby city, and if you looked the early photos of that structure, you’d think it’s just as scary. I’m not a structural engineer, but there was already a concrete core planned for the Luzon, and with the current methods and practices of sesmic upgrades, it’s not beyond the reach. It just may be be beyond will.
T Thorax O'Tool July 9, 2009
I’m a big time supporter of reusing old buildings. It’s sustainable and new architecture lacks the charm and soul of the older stuff.
But you do have to be wise enough to know which patients can make a full recovery and which ones just can’t be saved.
J J. Cote July 9, 2009
Everybody is screaming for the City to do something. From what I’ve read, it would appear that there already is quite a bit of public money involved. This includes, of course tax credits.
We the people have paid for our share of ballparks, stadiums, automakers and banks. I’m all for saving and preserving our architectural history, but when does all the public financing of private enterprise stop?
The public coffers are limited and the needs for supporting humans in dire circumstance should outweigh the needs to preserve a building.
The Food Connection is in desperate need of infant formula right now. I’d be in favor of throwing more dollars that way.
M Mofo from the Hood July 9, 2009
Have you ever been driving and by chance a flatbed truck passes you and it’s carrying a rusted out ’35 Ford carcass sans fenders, sans chassis, sans interior, sans windows–you know, basically a rusty hollow shell?
Then a month later you attend a local car show and some guy is showing a restored and customized ’35 Ford street rod and along with it are about a hundred before and after photos. And then you read the parts list for the car and it dawns on you that the only part that can be called a ’35 Ford is what is shown in Photo #1–a rusty hollow shell.
Well, that’s the dream sequence for a restoration of The Luzon.
Yeah, there will be some original content–bricks and whatever–but for the most part it will be a customized version of its original design. It will be a restored and customized building, but make no mistake, it will not be a restored Luzon.
M Morty July 9, 2009
According to the article there is 1.6 million in UDAG loans available, the cost of shoring the walls according to the owner is 500-700k, Install a rubber roof ,38k replace windows 350 a piece, spot point and acid wash brick. You would have a sound, secure and water tight structure at cost below the UDAG loan amount. Because it is a public safety issue construction approvals would be accelerated.
I understand the chicken and the egg scenario, need tenants to make improvements need improvements to attract tenants (no tenant will sign up with the building’s current condition), but with the available funding the project can be positioned to attract the tenants. Tenant improvement s can be built to suit.
I have restored a half dozen old brickies in Boston, these building are worth restoring and profitable to do so. The only time they’re not is if the dirt is more valuable. As the last tooth in a broken tooth block, it may be more advantageous for the developer to raze, with the adjacent lot it would create a great assemblage in the CBD for redevelopment in the next cycle. In this scenario it would more cost effective not to accommodate or included a historic building in the plan, tagging the building as a hazard is the most expedient way to remove, no time consuming approvals, no public hearings; It would not be the first time an old building has been destroyed in the name of public safety.
I ixora July 9, 2009
“…it may be more advantageous for the developer to raze…” There is very little dialogue here about what this building is and represents culturally. It is not just another old dilapidated building with possibly profitable investment options. It is one of the few artifacts left of the beginning of hi-rise architecture and one of the last buildings on the west coast designed by Burnham and Root still standing. It is not just in the financial interests of the owners, the city or local developers to determine its fate. It is in all our interests as a people to preserve this building. Recognize this, or we will have another parking lot where once we once had a unique vestige of our history.
S Sarah July 10, 2009
@17 may be right — I was in the building (for the Gintz Group) last summer and it wasn’t falling down. I don’t think a second analysis is needed — GG just needs to get going with the renovation!! If that building comes down, heads will be rolling.
O obie July 10, 2009
Ixora is the only one that gets it right. Any reason to save this building is an emotional one not a business decision. If it is worth it to the city or some entity to save it on that basis then they need to put up the money and not expect any return.
B Bruce July 11, 2009
I have lived in Tacoma for over 50 years. Some quite terrible things have been done to the downtown over those years. But we have done pretty well in saving some of our history (that which separates and defines who we were and are). I remember the Fun Circus that was at the Luzon decades ago: not very attractive. But after reading about the Luzon, I hope we can save it. Perhaps we do not need an S0S (Save Our Station—Union Station), but I would be willing to lend my support to an organization to save Luzon (though we are reaching a point of no return it sounds like).
A altered Chords July 13, 2009
Luzon building falling down,
falling down,
falling down.
Luzon building falling down.
Poor Tacoma.
When pre leased we’ll rennovate
rennovate
rennovate
when pre leased we’ll rennovate
historic building.